Friday, January 29, 2010

RV first time home credit IRS FAQ

When I read this FAQ from the IRS, there is specifically a question about the RV being eligible for the first time homebuyer credit. I thought the answer is/was very interesting.

Here is the text :

Q. Can an individual who has lived in an RV qualify for the credit?
A.  For purposes of the first-time homebuyer credit, an RV with a built-in motor is personal property that is not affixed to land and does not qualify as a principal residence. Accordingly, someone who has owned and lived in an RV within the past three years may still qualify as a first-time homebuyer.

So, you have to really be careful - and a little bit bold I think. It isn't all perfectly lined up by the Gov either. For example, it sounds like a 5th wheel or travel trailer WOULD be eligible for the first time home buyer credit IF you live in it full time BUT a Class A motorhome would NOT be eligible if you read the FAQ because it DOES have a motor - which is baloney.

But if you want the sales tax deduction that was enacted in 2009, you can get it on Motorhomes but you can't get it on 5th wheels or travel trailer because they DON'T have a motor.

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